Correlation Between Compania Minera and Nexa Resources
Specify exactly 2 symbols:
By analyzing existing cross correlation between Compania Minera Atacocha and Nexa Resources Peru, you can compare the effects of market volatilities on Compania Minera and Nexa Resources and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Compania Minera with a short position of Nexa Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Minera and Nexa Resources.
Diversification Opportunities for Compania Minera and Nexa Resources
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Compania and Nexa is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Compania Minera Atacocha and Nexa Resources Peru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexa Resources Peru and Compania Minera is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Compania Minera Atacocha are associated (or correlated) with Nexa Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexa Resources Peru has no effect on the direction of Compania Minera i.e., Compania Minera and Nexa Resources go up and down completely randomly.
Pair Corralation between Compania Minera and Nexa Resources
Assuming the 90 days trading horizon Compania Minera Atacocha is expected to generate 5.7 times more return on investment than Nexa Resources. However, Compania Minera is 5.7 times more volatile than Nexa Resources Peru. It trades about 0.08 of its potential returns per unit of risk. Nexa Resources Peru is currently generating about -0.05 per unit of risk. If you would invest 3.70 in Compania Minera Atacocha on September 13, 2024 and sell it today you would earn a total of 0.50 from holding Compania Minera Atacocha or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Compania Minera Atacocha vs. Nexa Resources Peru
Performance |
| Timeline |
| Compania Minera Atacocha |
| Nexa Resources Peru |
Compania Minera and Nexa Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania Minera and Nexa Resources
The main advantage of trading using opposite Compania Minera and Nexa Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Minera position performs unexpectedly, Nexa Resources can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nexa Resources will offset losses from the drop in Nexa Resources' long position.The idea behind Compania Minera Atacocha and Nexa Resources Peru pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nexa Resources vs. Bank of America | Nexa Resources vs. Southern Copper Corp | Nexa Resources vs. Banco de Credito | Nexa Resources vs. InRetail Peru Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |